Search results

11 – 20 of over 141000
Article
Publication date: 14 July 2022

Satya Prasad Padhi

The paper underpins an advanced domestic manufacturing that comes with some advanced employment specialization status of individual industries as the key determinant of foreign…

Abstract

Purpose

The paper underpins an advanced domestic manufacturing that comes with some advanced employment specialization status of individual industries as the key determinant of foreign direct investment (FDI) and considers how FDI in the food processing industry in India relates to this focal point.

Design/methodology/approach

This paper investigates how inward FDI inflows relate to domestic investment and revival in the industry using Auto Regressive Distributed lags (ARDL) model over the period 2000–2017. The model allows for different specifications to study whether FDI is responsible for the revival or the prior revival induces the FDI.

Findings

The results show the lack of proper advanced specialized employment status of the food processing industry. FDI in food processing is mainly guided by exports and imports opportunities and FDI plays no role in the revival of advanced growth in the industry. This finding explains why FDI in the industry is predominantly service sector oriented.

Originality/value

The paper underlines (1) the proper conceptualization of human capital as an important determinant of FDI; (2) reinterpretation of Kaldor's technical progress function that uncovers how employment dynamics embedded in intermediate goods specializations play a key role in supporting a higher pace of investment (and FDI); (3) labor costs' importance should involve not only the wage rate but also the advantages that a specialized employment base and (4) FDI in manufacturing demands a greater policy focus on developing domestic bases of intermediate goods specializations.

Details

International Journal of Emerging Markets, vol. 19 no. 3
Type: Research Article
ISSN: 1746-8809

Keywords

Book part
Publication date: 26 August 2019

Kirsi Snellman and Gabriella Cacciotti

The purpose of this chapter is to explore whether and how angel investors’ emotions unfold in the investment opportunity evaluation process as they interact with the social…

Abstract

Purpose

The purpose of this chapter is to explore whether and how angel investors’ emotions unfold in the investment opportunity evaluation process as they interact with the social environment. Complementing recent research that has emphasized the financial calculations, we add angel investors’ own emotional arousal to the list of tools that may help them to rate investment opportunities.

Design/Methodology/Approach

Drawing on semi-structured qualitative interviews, we develop a phenomenological analysis of the investment opportunity evaluation process at the level of angel investors’ lived experience.

Findings

Our findings indicate that when angel investors use their emotional arousal in evaluating investment criteria, they engage in a developmental process characterized by three elements: subjective validation, social validation, and investment decision.

Research Limitations/Implications

We illuminate how discrete emotions can complement rational considerations in the opportunity evaluation journey. Capturing the nature of emotion as action oriented, embodied, socially situated, and distributed, we embrace its adaptive socially situated dynamics.

Practical Implications

Taking a step toward better understanding of the soft aspects in the relationship development that leads to investments, we hope this study will help not only those entrepreneurs who need funding but also those policymakers who design new incentives that improve the flow of investment into promising new ventures.

Originality/Value

We demonstrate how angel investors’ emotions can complement their rational considerations in the investment opportunity evaluation process as they interact with the social environment. Identifying boundary values for the conditions that are necessary and sufficient to advance in the process, we have demonstrated how emotion can serve as a driving or restraining force not only during subjective validation but also during social validation.

Article
Publication date: 1 September 1997

George E. Pinches and Diane M. Lander

Interviews in South Korea, Taiwan, Singapore, and India indicate net present value (NPV) is not widely employed in making capital investment decisions in these newly…

Abstract

Interviews in South Korea, Taiwan, Singapore, and India indicate net present value (NPV) is not widely employed in making capital investment decisions in these newly industrialized and developing countries. It is not from lack of knowledge about net present value: rather, it is due to (1) widespread violation of the assumptions underlying NPV, (2) the high risk/high return nature of the capital investments, and (3) the decision‐making process employed in making capital investment decisions. These same three conditions exist for many capital investment decisions made by firms in developed countries. Only by abandoning the static NPV approach, building in real options, and understanding and building in the decision‐making process will further advances be made in capital budgeting decision‐making. One of the key paradigms in finance is net present value (NPV). In order to maximize value, managers should accept all positive NPV investment projects, and reject all negative NPV projects. The issue becomes more complex when uncertainty is introduced, or, as in recent years, when real options to defer, abandon, expand, etc. are incorporated into the decision‐making process [e.g., Dixit and Pindyck (1994) and Trigeorgis (1995 and 1996)]. However, with these exceptions, the state of the art in capital investment decision‐making revolves around the simple statement—take all positive NPV projects. In practice, evidence from surveys and discussions with corporate executives indicates the message taught for the last 30 years in business schools has been heard and, to a large extent, acted upon by larger U.S., Canadian, and British‐based firms. While larger firms in North America, and to a lesser extent Western Europe, generally employ the static, or traditional, NPV framework for making, or assisting in making, capital investment decisions, less is known about the decision‐making process employed by firms in other parts of the world. The question addressed in this study is: “Do firms in other parts of the world, especially in newly industrialized or developing countries in the Asia Pacific region, employ NPV for making capital investment decisions?” The purposes of this study are threefold: (1) to report the results of a series of open‐ended interviews conducted in South Korea, Taiwan, Singapore, and India about the capital investment decision‐making process employed; (2) to understand why NPV is not widely employed in making capital investment decisions in these newly industrialized and developing countries; and, most important, (3) to indicate that NPV and the capital budgeting decision‐making process need rethinking and refocusing to make them more effective—in all countries, whether developed, newly industrialized, or developing. The paper proceeds in the following manner. Section I provides an introduction to the study. In Section II the results of the interviews are presented. In Section III patterns that emerged during the interview process are presented, along with a number of specific examples of the types of capital investment decisions being considered. In Section IV the assumptions underlying NPV are examined, and then risk/return and the decision‐making process are considered. Section V contains the discussion and conclusions.

Details

Managerial Finance, vol. 23 no. 9
Type: Research Article
ISSN: 0307-4358

Open Access
Article
Publication date: 31 May 2023

Antti Ylä-Kujala, Damian Kedziora, Lasse Metso, Timo Kärri, Ari Happonen and Wojciech Piotrowicz

Robotic process automation (RPA) has recently emerged as a technology focusing on the automation of repetitive, frequent, voluminous and rule-based tasks. Despite a few practical…

1716

Abstract

Purpose

Robotic process automation (RPA) has recently emerged as a technology focusing on the automation of repetitive, frequent, voluminous and rule-based tasks. Despite a few practical examples that document successful RPA deployments in organizations, evidence of its economic benefits has been mostly anecdotal. The purpose of this paper is to present a step-by-step method to RPA investment appraisal and a business case demonstrating how the steps can be applied to practice.

Design/methodology/approach

The methodology relies on design science research (DSR). The step-by-step method is a design artefact that builds on the mapping of processes and modelling of the associated costs. Due to the longitudinal nature of capital investments, modelling uses discounted cashflow and present value methods. Empirical grounding characteristic to DSR is achieved by field testing the artefact.

Findings

The step-by-step method is comprised of a preparatory step, three modelling steps and a concluding step. The modelling consists of compounding the interest rate, discounting the investment costs and establishing measures for comparison. These steps were applied to seven business processes to be automated by the case company, Estate Blend. The decision to deploy RPA was found to be trivial, not only based on the initial case data, but also based on multiple sensitivity analyses that showed how resistant RPA investments are to changing circumstances.

Practical implications

By following the provided step-by-step method, executives and managers can quantify the costs and benefits of RPA. The developed method enables any organization to directly compare investment alternatives against each other and against the probable status quo where many tasks in organizations are still carried out manually with little to no automation.

Originality/value

The paper addresses a growing new domain in the field of business process management by capitalizing on DSR and modelling-based approaches to RPA investment appraisal.

Details

Business Process Management Journal, vol. 29 no. 8
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 1 April 1980

Richard Dobbins and Richard Pike

The corporate manager could easily be forgiven for assuming that capital budgeting is primarily concerned with the selection of an appropriate evaluation technique. Most texts on…

Abstract

The corporate manager could easily be forgiven for assuming that capital budgeting is primarily concerned with the selection of an appropriate evaluation technique. Most texts on the subject are devoted almost entirely to such topics as comparisons of evaluation techniques, determining hurdle rates of return and incorporating risk into the equations. Only a few writers have suggested that this emphasis is misplaced. This article places evaluation within the whole capital investment process from the conception of an investment opportunity to its completion. It also considers the total investment programme and how it relates to organisational planning and control systems.

Details

Managerial Finance, vol. 6 no. 2
Type: Research Article
ISSN: 0307-4358

Article
Publication date: 1 April 2004

In Lee

Because of increasing competition and limited capital budgets, firms need to carefully assess every information technology (IT) opportunity to ensure that their resources are…

12540

Abstract

Because of increasing competition and limited capital budgets, firms need to carefully assess every information technology (IT) opportunity to ensure that their resources are spent judiciously. Conventional wisdom holds that IT has enormous potential. However, organizations continue to question the benefits of IT in conjunction with new corporate initiatives such as business process re‐engineering, e‐commerce, and enterprise resource planning. Despite the potential benefits derived from IT investment, traditional capital budgeting models have failed to estimate true IT values due to their inability to measure complex interactions between IT and organizational performance. This paper presents a business process integrated IT evaluation methodology that integrates business strategy, business process design, and supporting IT investment. The evaluation methodology consists of four phases: strategic analysis; business process design; IT configuration; and performance evaluation. The empirical evidence and computational study strongly suggest that measuring cycle time impact on customers' repurchasing decisions is critical in evaluating the potential value of business‐process‐driven information technology investment.

Details

Business Process Management Journal, vol. 10 no. 2
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 30 September 2019

Benjamin Gbolahan Ekemode and Abel Olaleye

In a bid to broaden the understanding of the real estate investment decision-making framework, the purpose of this paper is to examine the real estate asset allocation…

Abstract

Purpose

In a bid to broaden the understanding of the real estate investment decision-making framework, the purpose of this paper is to examine the real estate asset allocation decision-making practices of real estate funds in Nigeria, a developing economy. This is with a view to providing information toward enhancing real estate investment decisions.

Design/methodology/approach

A mixed-methods approach comprising a combination of literature review, expert interviews and semi-structured questionnaire survey is adopted for this study. Through literature review and expert interviews, the asset allocation decision-making process of institutional real estate funds was identified. Based on the literature review and expert discussions, a semi-structured questionnaire was developed and self-administered on fund/portfolio managers of 59 institutional real estate funds in Nigeria to investigate their asset allocation decision-making practice. Data were analyzed using descriptive and inferential statistics for the closed-ended questions while the open-ended questions were content analyzed.

Findings

The findings revealed that the asset allocation decision-making process utilized by public and private real estate funds follows an opportunistic asset accumulation approach. The decision-making process also varies depending on the nature of the fund. Further findings showed that government policies, political uncertainties and regulatory mechanism motivate asset allocation decisions. Moreover, majority of the sampled real estate funds employed a combination of in-house personnel and external consultants (hybrid), while mean/standard deviation and cash flow analysis (DCF, NPV) were mostly utilized by the funds in making property investment decisions.

Practical implications

The findings implied that the real estate asset allocation decision-making process of institutional property investors in Nigeria deviates from the normative model of the asset allocation process prescribed in the literature and varies depending on the nature of the real estate funds. As such, familiarization of institutional investors with government policies, political climate and other regulatory mechanism (barriers to entry) guiding the ownership and operation of real estate assets in the country could improve their real estate investment decisions.

Originality/value

The study complements and extends existing literature on real estate asset allocation decision-making process of institutional investors from the viewpoint of the actors involved in a developing African economy.

Details

Property Management, vol. 38 no. 3
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 8 June 2020

Domenico Raucci, Antonella Santone, Francesco Mercaldo and Tomasz Dyczkowski

This paper investigates the criteria for a selective integration, in the multidisciplinary business process management (BPM) areas, between information technologies tools and the…

Abstract

Purpose

This paper investigates the criteria for a selective integration, in the multidisciplinary business process management (BPM) areas, between information technologies tools and the company's internal control systems (ICSs) aimed at directing organizational behaviours. Adopting a process-based perspective, the authors propose a formal methodology to increase ICSs aims, related to the segregation of duties (SoDs) models, efficiently and effectively.

Design/methodology/approach

The authors examine the applicability of formal verifications to validate a banking process of providing investment services, which is mapped through the workflow management system. To mitigate the state explosion problem of formal methods, the authors propose an efficient methodology that has been proved on the SoDs models in the bank ICSs, as a case study.

Findings

The authors’ investigations suggest that in the BPM domain, the banking ICSs aims can benefit from the aforesaid methodologies, originating from the formal methods area, to increase the reliability and correctness in the design, modelling and implementation of the SoDs models.

Originality/value

The proposed methodology is quite general and can be efficiently applied to large-scale systems in different business contexts or areas of the BPM. Its application to the bank's SoD prevents or detects significant weaknesses, operational risks, excessive risk appetite and other undesirable behaviours in the investment services provision processes. This guarantees that the investment ordered/offered is “suitable and appropriate” with the client's risk profile, especially non-professional, required by the MiFID II Directive.

Details

Industrial Management & Data Systems, vol. 120 no. 7
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 4 October 2011

Carlo Massironi and Marco Guicciardi

This paper aims to introduce the reader to investigate some aspects of investment decision making from a constructivist perspective.

3343

Abstract

Purpose

This paper aims to introduce the reader to investigate some aspects of investment decision making from a constructivist perspective.

Design/methodology/approach

The constructivist perspective is introduced in its dual nature of epistemology and of modelization. From constructivist epistemology, the paper mentions the corollaries of theoretical pluralism and cognitive pragmatism. From Kruglanski and Ajzen's Lay epistemology theory, the paper presents in more detail a constructivist modelization for the study and improvement of formal processes of investment decision making.

Findings

Beginning from the proposed framework, the paper indicates the lines for the development of a critical (or reflective) investment decision‐making attitude. This is an investment decision making which is able to reflect on its own constructs and cognitive processes in order to develop investment processes with a higher “constructivist awareness” and efficacy.

Originality/value

The proposed modelization can contribute to the work of those dedicated to the development of better formal processes of investment. The paper presents three examples of possible applications potentially useful for the improvement of the processes of asset valuation of value investors.

Details

Qualitative Research in Financial Markets, vol. 3 no. 3
Type: Research Article
ISSN: 1755-4179

Keywords

Book part
Publication date: 16 August 2014

Anne-Maria Holma

This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network…

Abstract

This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network approach (see, e.g., Axelsson & Easton, 1992; Håkansson & Snehota, 1995a). The study describes how adaptations initiate, how they progress, and what the outcomes of these adaptations are. Furthermore, the framework takes into account how adaptations spread in triadic relationship settings. The empirical context is corporate travel management, which is a chain of activities where an industrial enterprise, and its preferred travel agency and service supplier partners combine their resources. The scientific philosophy, on which the knowledge creation is based, is realist ontology. Epistemologically, the study relies on constructionist processes and interpretation. Case studies with in-depth interviews are the main source of data.

Details

Deep Knowledge of B2B Relationships within and Across Borders
Type: Book
ISBN: 978-1-78190-858-7

Keywords

11 – 20 of over 141000